The Federal Way Chamber of Commerce’s Access to Capital program serves as a key component of the Chamber’s broader economic development strategy for the South King area, aiming to attract and retain businesses as part of the Federal Way growth hub. Courtesy Federal Way Chamber of Commerce

The Federal Way Chamber of Commerce’s Access to Capital program serves as a key component of the Chamber’s broader economic development strategy for the South King area, aiming to attract and retain businesses as part of the Federal Way growth hub. Courtesy Federal Way Chamber of Commerce

Need capital to grow your business?

Federal Way Chamber enhances lending access for businesses

The Access to Capital program at the Greater Federal Way Chamber now includes a focus on lending to entrepreneurial and growth stage businesses with banks and credit unions in its network. This small business lending initiative addresses a critical need in South King county, as recent data from the Federal Reserve notes financial access to credit challenges for small business.

According to the 2024 Report on Employer Firms, based on the 2023 Small Business Credit Survey, over 90 percent of small businesses experienced financial or operational challenges in 2023. The most commonly reported financial challenges included rising costs and difficulties in paying operating expenses. Additionally, the share of firms applying for loans, lines of credit, or merchant cash advances declined year-over-year, while approval rates remained relatively unchanged.

Additionally, the Federal Reserve’s Senior Loan Officer Opinion Survey for the fourth quarter of 2024 indicated an increase in demand for commercial and industrial loans for the first time in two years. However, banks also reported tightening lending standards during this period.

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These findings suggest that while small businesses continue to face significant financial challenges, there is a nuanced landscape in terms of credit demand and lending standards.

“Our Access to Capital program aims to facilitate clearer pathways to financial products and services offered by our financial institutions,” said Rebecca Martin, CEO, Greater Federal Way Chamber of Commerce. “These connections can help small businesses overcome financial hurdles while fostering economic growth and job creation in our South King County footprint.”

The Chamber’s expanded program focuses on streamlining funding options through partnerships with banks and credit unions in its network, offering solutions ranging from vehicle and equipment loans to lines of credit and capital funding. This enhancement responds to feedback from the Chamber’s business retention programming, which identified securing loans and finding funds as primary growth challenges for small businesses.

Access to capital remains a critical factor for job creation, according to a trade report by J.P. Morgan. Small and medium-sized enterprises (SMEs) are pivotal in driving net-new job creation, especially in developing emerging markets and contributing to GDP growth. However, the lending gap for SMEs has been increasing, reaching an estimated $2.6 trillion in 2023, up from $1.5 trillion in 2020. Without adequate access to capital, SMEs face cash shortages that limit their ability to meet demand and fulfill orders, thereby threatening ongoing viability.

“Entrepreneurs and growth stage businesses often face economic challenges and our network of financial institutions can help a business navigate those challenges with the right support,” said Martin. “Our Chamber is committed to providing connections that support this economic journey at any stage of business growth.”

In fiscal year 2024, the Small Business Administration (SBA) backed $56 billion in financing to small businesses and disaster-affected areas, marking a 7 percent increase from the previous year. Notably, the SBA distributed over 100,000 financings, a 22 percent rise from fiscal 2023 and a 50 percent increase since 2020. This growth was driven by smaller loans, with over 38,000 7(a) loans under $150,000, doubling the small-dollar loans since 2020.

The Access to Capital program serves as a key component of the Chamber’s broader economic development strategy for the South King area, aiming to attract and retain businesses as part of the Federal Way growth hub. Detailed information about available financial options and participating institutions can be found at fedwaychamber.com/access-to-capital

About the Greater Federal Way Chamber

An economic development-focused, membership-supported association, the Greater Federal Way Chamber of Commerce is comprised of business enterprises, civic and community organizations, educational institutions, and public sector agencies.

A growth hub centrally located in South King County, the Greater Federal Way Chamber is regionally focused on connecting economic opportunities. The Federal Way CEO is the only nationally certified executive on the West Coast with the CCE designation from the Association of Chamber of Commerce Executives.

For information and economic data, visit the Chamber at fedwaychamber.com

The news and editorial staff of Sound Publishing, Inc. had no role in the preparation of this post. The views and opinions expressed in this sponsored post are those of the advertiser and do not reflect those of Sound Publishing, Inc.

Sound Publishing, Inc. does not accept liability for any loss or damages caused by the use of any products, nor do we endorse any products posted in our Marketplace.

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